After the great migration to the bear market, crypto miners had to overcome a number of problems over the year, including a change in profitability. According to Steve Bassi, an expert on Bitcoin (BTC) and Ether (ETH) mining, though, crypto mining may still be lucrative if we consider its long-term prospects.
The projected time frame in which a miner would cover the cost of one device is five to six years, as the costs of application-specific integrated circuit (ASIC) miners range from $8,000 to $12,000, and electricity expenses exceed half of the anticipated revenue.
When asked about the situation, Bassi stated that while mining revenue may appear bleak in the near term, it will improve with time. If prices don’t change in the years ahead, miners might find themselves without a rooster in their nest if the devices are not built to last for long.
He also noted that the mining hardware will “devalue” in a period of five years, and some parts will need a complete replacement. “This will eventually lead to that the hardware will become less efficient and profitable to use with time.”
Bassi also said that unfortunately, in half of these devices operators will need to replace a fan or power supply after only a couple of years.
However, despite these benefits, the mining expert praised the cooling system on the new Antminer devices. If this standard continues, said Bassi, cooling will be more efficient and only those miners planning for liquid cooling will be competitive.